PESN: Update on Hurricane Katrina's Damage to the Gulf Oil Patch
Posted by Prof. Goose on September 12, 2005 - 3:07pm
http://pesn.com/2005/09/11/9600163_Katrina_Oil_Aftermath/
It is not a pretty picture (in fact I would like to hear some critiques of this if there are any to be done.)
The linked article discusses the author's perceived repercussions of Katrina's impact on the Gulf oil infrastructure. There are also some remedies discussed in the piece, including emergency spending on alternative energy technologies. The article also discusses the ramifications on employment in other industries, agricultural production, etc.
Technorati Tags: peak oil, oil, Katrina, Hurricane Katrina, gas prices
A possible complication with refinery restarts is that a large supply of nitrogen is required to purge the units. This usually comes from a pipeline, onsite liquid, or mobile units. If all of these are out then no start.
Now what is Katrina going to do to the LNG (liquified natural gas)projects? On the one hand, LNG is the only promise for a reduction in natural gas prices in the U.S. On the other hand, the proposed regasification terminals lie in right in the middle of the Gulf of Mexico hurricane path. (The answer to why there can be answered by the abbreviation NIMBY: "not in my back yard" voiced by richer east/west coastal states.) It is not clear if Katrina will accelerate the LNG projects because of the higher price, or will it slow them down.
...interesting times :)....
Gasoline is down because Europe is shipping over, i.e. also flooding the market with it.
Natural gas is down and i dont know why. this is strange indeed. may be i'm missing something.
all of this will change as we head into winter. i am predicting early october. expect all energy prices to break $70.
I was reading here about some oil that began flowing the first and second week of September. So disregard my previous statement. Thanks.
Farmers are really taking a hit on this. About 77% of the cost of ammonia fertilizer is due to natural gas. And the fall harvest and winter wheat planting are getting underway. There's no real relief in sight for natural gas either, the EIA in their most recent short term energy outlook see the price of natural gas going up to around $12/mcf by December for every single scenario vs the $9/mcf that it was in August.
Also with regards to the article, I didn't see him mention energy efficiency (or what I call conservation) at all when he was talking about solutions to the energy problem. North Americans just use way too much energy and they don't have to. It's crazy to be driving in the city at 20mph in a car that has a 120hp (90kW) engine when 500W does the trick.
This is the first I've heard that the land is or may actually be sinking / sunk. I know that New Orleans has had a slow problem (since they began holding back the Mississippi from flooding about eighty years ago the Delta has not had any fresh silt) but did Katrina really cause a big shift? Or is this guy just looking at standing water and assuming the land beneath it has dropped?
Anybody know more about this? Sorry, it's not really a peak oil related question, but it does relate to whether they will be able to keep a workforce in the area, I suppose.
My first question has to do with pesn.com itself. I haven't really visited this website in the past, so my first question is what type of reputation do they have? Are they fearmongers (like Kunstler), or do they tend to present a more level-headed view?
For instance:
Somebody with access to the numbers and/or time to do the research please help on this one - some verification and/or debunking may be useful for all of us in deciding how to react to this.
Huh??? Global famine is "approaching certainty"? I know nothing about PESN, but this line sounds a lot like they've let their assumptions run away with them.
Just before posting this, I checked the prior posting referenced above, and it has this gem:
-----------------------------------------
The President of the US is sleeping, unaware of the magnitude of the calamity that has happened. Inside info from the US Army Corps of Engineers reveals a damage area of nearly total destruction of 90,000 square miles. The permanently homeless here number about 7 million. The permanently unemployed are about 3 million. This situation is risking the collapse of the world economy. It is possible that those of us who lived through Katrina are the best off. I lived through it in North Alabama. We have wide spread damage but mostly minor here. On a "Fat Triangle extending essentially from Morgan City, La to Escambia County Florida, to a point about 100 miles south of Florence Alabama is nearly totally wiped out. Of course there are areas within this region which are OK, but in general the damage is very bad.
The duration of the problems here will be years.
The energy issues here represent a "World Wide Famine." This situation has endangered the survival of nearly one billion persons in the rest of the world. World War is almost certain to follow this.
-----------------------------------------
Yowza.
"The US Income Tax left the USA mesmerized by "Just in Time" inventories for many years. This caused the end of local stores of fuel. It consolidated the refineries. It ended the supply store with a stock of parts and left us living by an Air Bridge to Asia for our resupply. Asia has come to believe in the instant continuous market in the USA. This term "Just in Time" should in emergency be viewed as "Just Inadequate Treatment." This applies to epidemic, fire, flood and terrorism. The USA used to keep massive stocks of supplies for the cold war -- and does not have them now. This left the US Military fetching supplies from all over the world just to handle a Hurricane. The Income Tax must be repealed and replaced with the "Fair Tax" (www.fairtax.org) in order to return to having adequate supplies for emergencies."
Huh!!! That is totally incoherent ...
They had a "gravity motor" - sounded like a perpetual motion machine...
Then there was using acetone as a fuel additive to improve fuel mileage. I had seen this one discussed before, and this was also viewed as quackery.
There may be nuggets of truth in the article about the oil situation, but my inclination is to quietly back away from these folks, and let them play with their little machines.
A very quick Google News search shows a score of articles such as this one, all of which echo the refrain "In its monthly crop report, the Agriculture Department raised the forecasts for cotton, rice, soybeans and corn over last month's estimates. And though farmers are expected to grow more sugarcane than in 2004, the department lowered the production forecast from last month." and "Nationwide, cotton production is forecast at 22.3 million 480-pound bales, up 5 percent from last month's forecast but down 4 percent from last year's record production. If the trend continues, this year's crop would be the second-best on record, the department said."
Cause for alarm? Not so sure. Yes certain individuals will be harmed, no doubt. But that happens every year. This is cotton farming we're talking about.
He makes this dire prediction:
in an article dated six days agao...1. Kudos to the OD camp for being reality based and taking such a level-headed view of these critical issues.
2. The author of these PESN articles has just been added to my Apocalypticon Hall of Fame. Honestly, how can anyone read this stuff without detecting a distinct whiff (if not the overpowering stench) of civilization death wish? I'm as unyielding a proponent of freedom of speech as anyone here, so I'm not about to say that that author or anyone else shouldn't have the right to say whatever he or she wants. But that doesn't mean we should accept it uncritically. Extraordinary demands STILL require extraordinary proof.
I'd suggest reading Diet for a Small Plant by Lappe. That
book is about 30 years old now and many others scream about
the unsustainable agriculture system we have.
My family, buys organic and local - no unnatural fertilizers and
pesticides. We eat a predominately veggi diet. Those that
eat meat bio-concentrate the pesticides and other toxins
that we've put into the biosphere. It takes aprox 2500 gal
to get one pound of beef - 10 calories of oil to make one
calorie of processed "food". 16 pounds of grain makes for
one pound of beef. That grain could have fed a lot of people.
There is no shortage of food on this planet - it's just
that we're feeding it to aminals so that the rich can kill
themselves eating meat. Read Diet For A New America or
The Food Revolution by Robbins or The China Study to find
out about the links between our western health problems and
what we eat. Western health problems (cancer, clogged arteries,
obesity, osteoperosis) are primarily due to our high fat, high
protein, high dairy, low fiber diets.
My hope for surviving peak oil is that so much can be done
by a shift to a predominately veggie diet - both in terms of
health and less oil intensive industrial farming.
However, for decades we've already known about the salination
of our farm lands (reducing or killing productivity) as well
as polluting of aquifers. Because of that, and paving over our
best farm land, I'm not sure that we're going to take well to
peak oil.
The one that I am sure is wrong is their statement that 15% of US refining capacity will be offline for months. I have followed this issue closely, and every other source states that 5% of US refining capacity will be offline. This is a huge exaggeration, and it seems likely that the article is full of such exaggerations. I don't think that it should be taken seriously.